Malaysia's Economy Surpasses Expectations with 4.9% Growth in 2025

Malaysia's economy expanded by 4.9% in 2025, exceeding the official government and central bank projections of 4.0% to 4.8%. This growth was largely fueled by a remarkable 5.7% year-on-year expansion in the fourth quarter, the fastest pace since the second quarter of 2024 when the economy grew by 5.9%. The services, manufacturing, and construction sectors played key roles in this robust performance, supported by a continued strengthening in domestic demand.

Chief Statistician Mohd Uzir Mahidin mohd uzir mahidinhighlighted that the Q4 growth was underpinned by resilient domestic demand, which remained strong despite external challenges such as the 19% tariff imposed by the United States US on most Malaysian imports. Export growth also showed resilience, rising by 15.7% year-on-year in October before moderating to 7% in November.